insurance

Question 1

The annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE

Answer 1

The beneficiary will receive the greater of the money paid into the annuity or the cash value

Question 2

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

Answer 2

The policy is owned by the company.

Question 3

Which of the following is an example of a limited-pay life policy?

Answer 3

Life Paid-up at Age 65

Question 4

Employer contributions made to a qualified plan

Answer 4

Are subject to vesting requirements

Question 5

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained

Answer 5

3 days

Question 6

A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then

Answer 6

The benefit is received tax free

Question 7

Which of the following riders would NOT cause the Death Benefit to increase?

Answer 7

Payor Benefit Rider

Question 8

Which of the following life insurance policies allows a policyowner to take out a loan from the policy’s cash value?

Answer 8

Variable universal life

Question 9

Which of the following statements is TRUE concerning whole life insurance?

Answer 9

Lump-sum death benefits are not taxable

Question 10

Which is NOT true about beneficiary designations?

Answer 10

The beneficiary must have insurable interest in the insured

Question 11

Which of the following information will be stated in the consideration clause of a life insurance policy?

Answer 11

The amount of premium payment

Question 12

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

Answer 12

Convertible Term Policy

Question 13

Which of the following is INCORRECT regarding a $100,000 20-year level term policy?

Answer 13

At the end of 20 years, the policy’s cash value will equal $100,000

Question 14

The death benefit under the Universal Life Option B

Answer 14

Gradually increases each year by the amount that the cash value increases

Question 15

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Answer 15

Consideration

Question 16

Which of the following would describe a legal document which would dictate who can buy a deceased partner’s share of a business and for what amount?

Answer 16

Buy-sell agreement

Question 17

What is the purpose of a conditional receipt?

Answer 17

It is intended to provide coverage on a date prior to the policy issue

Question 18

Which of the following is TRUE of a qualified plan?

Answer 18

It has a tax benefit for both employer and employee.

Question 19

When is the earliest a policy may go into effect?

Answer 19

When the application is signed and a check is given to the agent

Question 20

Why is an equity indexed annuity considered to be a fixed annuity?

Answer 20

It has a guaranteed minimum interest rate

Question 21

Which of the following is the basic source of information used by the company in the risk selection process?

Answer 21

Application

Question 22

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor’s parents have died or become disabled?

Answer 22

Payor Benefit